KARACHI, July 14: Cotton market on Saturday maintained bullish outlook as ginners remained in a commanding position and continued to cash in on the lower ready supplies of the new crop.

Although a bit late owing to heavy rain and flash floods, Sindh ginners also joined the race of new crop sellers at the current higher levels, floor brokers said.

Owing to varietal difference the lower Sindh new crop was being sold between Rs2,900 and Rs2,950 per maund but its counterpart in the central Punjab cotton belt was fetching Rs3,100 per maund, brokers said.

The selling price difference between the two on average quality lint in normal trading conditions should not be more than Rs100 per maund and this reflects spinners’ scramble to grab the floating stock amid predictions of further rise in prices, they observed.

“I don’t think prices will ease from the current level despite the fact the more ginneries both in the Sindh and the Punjab cotton belts are resuming ginning operations,” said a ginner, adding “the fear of a short crop will continue to haunt mills and spinners”.

The current price flare-up fuelled by higher world rates notably of New York cotton futures may not be contained as supplies are expected to lag for behind the demand because of short crop in some of the leading producers including Pakistan, they added.

The New York cotton futures, known as world price trend-setters, are virtually galloping to their next target of 70 cents per lb, cotton analysts said.

The NY cotton futures were quoted higher by 1.24 and 1.33 cents at 66.49 and 68.38 cents per lb for both the ruling October and the forward December contracts respectively.There was, however, no change in the official spot rates, which were again quoted at Rs2,850 per maund for an average quality lint.

Ready offtake was light totalling about 3,000 bales all in new crop.

SINDH TYPE: 400 bales, Sultanabad at Rs2,900, 400 bales and 200 bales, Shahdadpur and Mirpurkhas at Rs2,950.